Can the Advertising Fund be charged for the costs associated with maintaining the Southern Steer Website?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor reserves the right to charge the Advertising Fund for the costs associated with the maintenance or enhancement of the Southern Steer Website.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchisor reserves the right to charge the Advertising Fund for the costs associated with maintaining or enhancing the Southern Steer Website. This means that a portion of the advertising fees paid by franchisees can be used to cover expenses related to the website's upkeep and improvements. The franchisor maintains control over the Southern Steer Website, including its features, content, and overall management.
Southern Steer franchisees are not permitted to create their own websites or social media presence to promote their business without prior written approval from the franchisor. The franchisor retains the sole right to promote the products and services online and to create and maintain the official Southern Steer Website. This ensures brand consistency and allows the franchisor to manage the online presence of all Southern Steer businesses.
For a prospective franchisee, this means that while they contribute to the Advertising Fund, a portion of those funds may be used for the Southern Steer Website. Franchisees do not have control over how these funds are allocated, as the franchisor has the unilateral right to determine how the Brand Fund is spent. It is important for franchisees to understand that they cannot independently manage their online presence without approval and that the franchisor has the authority to use advertising funds for website-related expenses.